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The company that holds the majority of Benjamin Hornigold's (ASX: BHD) assets has fallen into receivership, and the embattled company is anxious for repayment.
JB Financial Group (JBFG) fell into receivership today, with Wexted Advisors being appointed as the group's receivers and managers by Partners For Growth (PFG) under its security over JBFG.
JBFG is the sole shareholder of King's Currency, the group which currently holds a $7.4 million loan repayable to Benjamin Hornigold under an order made earlier this year by the Takeover Panel.
In addition to the loan held by King's Currency, which Benjamin Hornigold insists is held under a trust agreement, the majority of BHD's assets are loans and services agreements with JBFG.
These include a $2.6 million JBFG convertible loan, a $900,000 unsecured loan (repayable 31 October), and a $1.1 million John Bridgeman loan. John Bridgeman's primary investments are directly and indirectly in JBFG.
"As disclosed in our announcement on 23rd October, the JBFG convertible loan and JBL loan are in default and the company believes that they are immediately repayable in full," says Benjamin Hornigold.
"PFG maintains that it holds a fixed charge over the King's Currency foreign currency notes. The company disputes PFG's characterisation and maintains that the King's Currency foreign currency notes are held on trust for the company."
"The company intends to defend its rights to the return of its property and the enforcement of its rights under the loans and service agreements with JBFG and its subsidiaries."
The repayment of the King's Currency loan was ordered following an unsuccessful takeover of Benjamin Hornigold by NSX-listed investment management group John Bridgeman.
John Bridgeman failed twice to take over Benjamin Hornigold, both times because the Takeovers Panel determined the investment manager was implementing lock-up devices and reducing competitiveness.
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